Positioning no disclosures inside 60 days, left as found
Options put/call open interest 0.00, read 2026-11-05
Ethical passes the values gate
Price9.70 USD
Fair value6.65
Ethical score70.0/100
Value readOvervaluedas of 4 Nov 2026
Our investment reviews on this name
2026-11-03Read Distribution8.70+11.5% to today Markdown gives way to Distribution after a 15% slide in 3 weeks
2026-10-11Read Markdown10.20-4.9% to today ✓Accumulation gives way to Markdown after an 8% slide in 9 days
2026-10-02Read Accumulation11.11-12.7% to today Markup gives way to Accumulation after a 12% rise in 2 weeks
2026-09-16Read Markup9.96-2.6% to today Distribution gives way to Markup after a 15% rise in 4 weeks
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
WEBTOON Entertainment Inc. holds its Distribution at $9.70. Consolidating, no directional conviction, held for 216 days.
As held on the ledger · 2026-11-04
Phase
Distribution · caution
Quantitative state
Consolidating, no directional conviction, held for 216 days
Price at the screen
$9.70
Valuation
N/A trailing · 38.04 forward price to earnings
Values screen
PASS· score 70.0
Beta
2.65
The Workings
Five Screens, Shown in Full
Full pass across all five screens. This security clears the Titan Ethical Standard: its business and its balance sheet both stay inside the lines.
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
1.48%
Below 33%
Interest-bearing debt is just 1.5% of its assets, well under the one-third ceiling: it does not run on borrowed money.
Pass
Interest-bearing cash
1.48%
Below 33%
Cash held in interest-bearing accounts and securities is 1.5% of assets, under the one-third limit.
Pass
Receivables
47.54%
Below 49%
Money owed to the company is 47.5% of assets, under the 49% limit.
Pass
Revenue purity
1.39%
Below 5%
Only 1.4% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Clears, in Plain English
WEBTOON Entertainment clears all five screens. Its business is in a permissible area, its debt is near-nil, and interest is about 1% of its income, under the ~5% line, so it passes.
Read as at 2026-11-05. It updates when the underlying figures move, and past reads are kept below.
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Get an email when WBTN's ethical verdict changes
Today WBTN passes the screen. If new figures move it to a fail, we send you one short email with the before and after. Verdicts change rarely, so you may not hear from us for a long time.
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What the Numbers Say It Is Worth
The Fair Value Range
Our analysis reads Overvalued vs our fair value, as of 4 Nov 2026: it trades above our $6.65 fair value estimate.
Fair value range in USD, drawn from the 2026-11-04 screen. The gold marker is the market price at the same screen. The price runs 45.9% above the base estimate.
Third-party analyst targets: 7 covering, consensus Buy. The average target sits +13% from the screen price.
Reading the gap · Our more conservative model reads it as fully-to-richly valued here, while the Street is more bullish: a quality-at-a-fair-price name rather than a deep-value one.
Where our models see it going: fair-value estimate $6.65, with a range of $6.65 to $7.64, dated to the 2026-11-04 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Digital comics platform priced well beyond its worth
Picture a global storytelling platform where fans binge webtoons daily yet the business still posts shrinking sales and deep losses. WEBTOON Entertainment sits in exactly that spot, with revenue down 2 percent, a negative 24 percent profit margin and return on equity at negative 26 percent. Our fair value sits at 7.46 dollars against the current 10.43 dollar price, a 28 percent premium that leaves no margin of safety and earns an opportunity rating of none.
We pass because the forward price to earnings multiple of 32.1 times offers no buffer for a company that has yet to prove it can generate consistent profits or growth. The ethical screen clears without issue, yet the numbers show a firm burning cash in a competitive content market where scale has not translated into returns.
Analyst targets cluster around 12 dollars but ignore the cyclical risk of creator platforms that can lose users as fast as they gain them. Peak expectations already appear baked in, turning any apparent cheapness into a potential trap rather than opportunity. Analysis, not advice.
Another profit measure, before interest, tax and non-cash costs: EBITDA.
The risks · The things to watch: it's a small-cap, so the share price can swing harder than the market; it already moves more than the market on an average day; it carries a real debt load, which raises the stakes if revenue slips.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
WBTN trades on Nasdaq. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-11-05Distribution$9.70+8.9%Entry 14
The analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved up 8.9% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it C. Technically it is sitting below its long-term trend line with momentum reading bearish. Over the past year the shares are up 26%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (7 analysts) rates it buy, with a mean price target of $12. It reported earnings in this window, a natural checkpoint for the thesis.
2026-11-04Distribution$8.91+2.4%Entry 13
The analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved up 2.4% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it C. Technically it is sitting below its long-term trend line with momentum reading bearish. Over the past year the shares are up 26%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (7 analysts) rates it buy, with a mean price target of $12. It reported earnings in this window, a natural checkpoint for the thesis.
The framework has shifted from markdown to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 1.9% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it C. Technically it is sitting below its long-term trend line with momentum reading bearish. Over the past year the shares are up 26%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (7 analysts) rates it buy, with a mean price target of $12. It reported earnings in this window, a natural checkpoint for the thesis.
2026-11-02Markdown$8.87+0.0%Entry 11
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it C. Technically it is sitting below its long-term trend line with momentum reading bearish. Over the past year the shares are up 26%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (7 analysts) rates it buy, with a mean price target of $12. It reported earnings in this window, a natural checkpoint for the thesis.
2026-11-01Markdown$8.87-9.9%Entry 10
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 9.9% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it D. Technically it is sitting below its long-term trend line with momentum reading bearish. Over the past year the shares are up 26%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (7 analysts) rates it buy, with a mean price target of $12.
2026-10-25Markdown$9.84+10.2%Entry 9
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved up 10.2% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it D. Technically it is sitting below its long-term trend line with momentum reading oversold. Over the past year the shares are up 26%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (7 analysts) rates it buy, with a mean price target of $12.
2026-10-18Markdown$8.93-12.5%Entry 8
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 12.5% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it D. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are up 26%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (7 analysts) rates it buy, with a mean price target of $12.
2026-10-11Markdown · changed$10.20-8.2%Entry 7
The framework has shifted from accumulation to markdown since the last review. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 8.2% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are up 26%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (7 analysts) rates it buy, with a mean price target of $12.
The framework has shifted from markup to accumulation since the last review. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved up 11.5% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are up 26%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (7 analysts) rates it buy, with a mean price target of $12.
2026-09-16Markup · changed$9.96+15.4%Entry 5
The framework has shifted from distribution to markup since the last review. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 15.4% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are up 26%. Our forward projection puts the odds of a 10% gain over the next month near 28%. The street (7 analysts) rates it buy, with a mean price target of $12.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
